Sumitomo Mitsui Trust Bank of Japan sells shares worth Rs 450 cr in Reliance Capital to FII's

Sumitomo Mitsui Trust Bank of Japan (SMTB) on Wednesday sold Reliance Capital shares worth USD 70 million (around Rs 450 crore) to foreign investors through open market transaction, sources said.

SMTB had purchased the stake in Reliance Capital (RCAP) when it had applied for banking license. However, since new RBI policy does not permit RCAP to hold more than 10 per cent of a bank, SMTB has booked profit at Rs 650 per share and sold its stake to FIIs, investment banking sources said.

Nomura Securities placed 7 million shares of SMTB n RCAP with FIIs for USD 70 million, they added. SMTB had bought 2.77 per cent in RCAP for Rs 371 crore and have now sold for Rs 450 crore through open market transaction.

Reliance Capital spokesperson declined to comment on the development. Shares of Reliance Capital were trading at Rs 659.15, down 1.47 per cent in morning trade on the BSE.